Jazz (JAZZ) recruits first patient in psychiatric disorder study
Jazz Pharmaceuticals plc JAZZ announced that it has enrolled the first patient in a Phase II study evaluating its investigational candidate, JZP150, for the treatment of adult patients with post-traumatic stress disorder (“PTSD”), a psychiatric illness.
The double-blind, randomized, placebo-controlled study will recruit 270 adults across the United States. The study will evaluate the safety and effectiveness of two doses of JZP150 as a once-daily treatment in adults aged 18 to 70 years who are diagnosed with PTSD. The primary endpoint of the study measures changes in participants from the start of the study to the end of treatment using a clinician-administered PTSD scale score.
Jazz plans to provide the first data from this Phase II study by the end of 2023.
The FDA has already granted a Fast Track designation to JZP150 for the treatment of PTSD. If developed successfully and after potential approval, JZP150 will become the first new drug to be approved for patients with PTSD in 20 years.
Jazz shares are down 22.3% so far this year compared to the industry’s 17% drop.
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In October 2020, Jazz acquired a program of fatty acid amide hydrolase (“FAAH”) inhibitors, including JZP150, from SpringWorks Therapeutics. JZP150 is designed to treat the underlying cause of PTSD as well as associated symptoms such as anxiety, insomnia, and nightmares.
According to the press release, currently approved drugs have limited effectiveness and do not cure PTSD. Therefore, if developed successfully and after potential approval, JZP150 can serve an area of great unmet medical need and treat this debilitating disorder.
Jazz’s neuroscience franchise – which consists of three sleep disorder drugs (Xyrem, Sunosi, and Xywav) and one seizure drug (Epidiolex) – is a key revenue generator for the company. The marketed neuroscientific drugs generated revenues of $ 646.1 million in the third quarter of 2021. Meanwhile, Jazz continues to strengthen this franchise through acquisitions or partnerships. In May 2021, Jazz acquired a British cannabinoid pharmaceutical company, GW Pharmaceuticals. The acquisition added Epidiolex – approved for the treatment of seizures associated with two rare and severe forms of epilepsy, namely Lennox-Gastaut syndrome and Dravet syndrome – to its portfolio.
Zacks rank and actions to consider
Jazz currently wears a Zacks Rank # 3 (Hold). Top-ranked stocks in the health sector include GlaxoSmithKline plc GSK, Endo International plc ENDP and IVERIC bio, Inc. ISEE, all currently sporting a Zacks Rank # 2 (Buy). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
GlaxoSmithKline’s earnings estimates have been revised up 5.2% for 2021 and 3.2% for 2022 in the past 60 days. The stock has climbed 19.9% year-to-date.
GlaxoSmithKline profits have beaten estimates in two of the past four quarters, missed the same once and matched it once.
Endo International’s profit estimates have been revised up 22.8% for 2021 and 1.8% for 2022 in the past 60 days.
Endo International profits have exceeded estimates in each of the past four quarters.
IVERIC bio’s loss per share estimates have declined 7.6% for 2021 and 11.9% for 2022, over the past 60 days. The stock has climbed 137.9% year-to-date.
IVERIC bio profits have exceeded estimates in one of the last four quarters and missed the same on the other three occasions.
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